I just find it ludicrous that bureaucrats presume to have the knowledge to impose decisions to 'protect' consumers where all that is achieved is to enable banks to increase profits via higher interest rates. On one hand they claim that loans need to meet consumers needs but they have determined that it should be P&I loans. If they never meet the consumer, how can they make that broad ascertain? By restricting supply, economics 101, price goes up and who benefits - lenders.What evidence is there to justify charging higher interest rates for IO loans? In fact, what evidence is there to charge higher interest rates for investment lending? I am sure the lenders will lose some money on the mining towns but they only have to blame themselves for that one. As to having to enquire as to detailed living expenses, do they really think most consumers know the breakdown of what they spend on a day to day basis? The most that consumers know is what they can save from pay to pay and the rest simply goes. Obviously there are a minority that do closely monitor what they spend but my experience is that most do not. Once they take a mortgage, they then adjust their lifestyles accordingly.